CSR and the Companies Act, 2013: Be Bold, Take Action

Epstein, Marc J.Yuthas, KristiSanghavi, DevalDasra

The Corporate Social Responsibility (CSR) rules in the Companies Act, 2013 will forever change the way CSR is conducted in India and throughout the world. Beginning in April of 2014, large and medium-sized Indian companies will be required to spend 2% of their profits on charitable causes. This represents both a challenge to be managed and an opportunity to be embraced by the more than 16,000 registered companies that will be affected by the law.

The term ‘Corporate Social Responsibility’, or CSR, has been defined in a large variety of ways. Here, we take a broad interpretation of CSR which encompasses social and environmental impacts from normal operations as well as through philanthropic endeavors. This perspective views CSR and sustainability as interchangeable; companies have a responsibility to balance the corporate mandate for profitability with the needs of stakeholders such as community members, trading partners, agencies, and others that are affected by corporate activities.

CSREducation FinancingIndiaOriginal research

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